Road To Perdition or Gentrification?

By: Erik Swarts | Mon, Jul 11, 2011
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A funny thing happened on the way to a lower low...

Europe momentarily suspended reality, dreamed of austerity, embraced calamity and believed in unity.

Then they woke up.

From my perspective, the only thing keeping the US dollar from embarking on an early 1980's moonshot - is our own political wranglings and posturing in Congress.

I realize that may come as a surprise.

What will happen if we actually get off our fiscal road of perdition (or perhaps just one wheel off for now) and onto a path of relative achievement and austerity?

I know - it's just a dream, but...

We might actually wake up and find that our own dilapidated fiscal house is built on the right side of the tracks and in a neighborhood about to go through a preliminary phase of gentrification. It won't be an easy path, and I do believe we will soon find that lower low I have been searching for - and perhaps more than we can comfortably chew for a spell.

But gentrification does not have to be a four letter word.

I always try to keep things in perspective. Here's a few charts that hopefully does just that.

Euro/Dollar

Euro/CRB

SLV SPX and FXE Weekly

FXE Weekly

Silver/US Dollar

 


Disclaimer: Position in UUP, ZSL & SPXU

 


 

Erik Swarts

Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/